Compensation for Damages (Law)

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      Inside Fox’s Legal and Business Debacle

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      In August 2021, the Fox Corporation board of directors gathered on the company’s movie studio lot in Los Angeles. Among the topics on the agenda: Dominion Voting Systems’ $1.6 billion defamation lawsuit against its cable news network, Fox News.The suit posed a threat to the company’s finances and reputation. But Fox’s chief legal officer, Viet Dinh, reassured the board: Even if the company lost at trial, it would ultimately prevail. The First Amendment was on Fox’s side, he explained, even if proving so could require going to the Supreme Court.Mr. Dinh told others inside the company that Fox’s possible legal costs, at tens of millions of dollars, could outstrip any damages the company would have to pay to Dominion.That determination informed a series of missteps and miscalculations over the next 20 months, according to a New York Times review of court and business records, and interviews with roughly a dozen people directly involved in or briefed on the company’s decision-making.The case resulted in one of the biggest legal and business debacles in the history of Rupert Murdoch’s media empire: an avalanche of embarrassing disclosures from internal messages released in court filings; the largest known settlement in a defamation suit, $787.5 million; two shareholder lawsuits; and the benching of Fox’s top prime-time star, Tucker Carlson.And for all of that, Fox still faces a lawsuit seeking even more in damages, $2.7 billion, filed by another subject of the stolen-election theory, the voting software company Smartmatic, which can now build on the evidence produced in the Dominion case to press its own considerable claims.In the month since the settlement, Fox has refused to comment in detail on the case or the many subsequent setbacks. That has left a string of unanswered questions: Why did the company not settle earlier and avoid the release of private emails and texts from executives and hosts? How did one of the most potentially prejudicial pieces of evidence — a text from Mr. Carlson about race and violence — escape high-level notice until the eve of the trial? How did Fox’s pretrial assessment so spectacularly miss the mark?Repeatedly, Fox executives overlooked warning signs about the damage they and their network would sustain, The Times found. They also failed to recognize how far their cable news networks, Fox News and Fox Business, had strayed into defamatory territory by promoting President Donald J. Trump’s election conspiracy theories — the central issue in the case. (Fox maintains it did not defame Dominion.)When pretrial rulings went against the company, Fox did not pursue a settlement in any real way. Executives were then caught flat-footed as Dominion’s court filings included internal Fox messages that made clear how the company chased a Trump-loving audience that preferred his election lies — the same lies that helped feed the Jan. 6 Capitol riots — to the truth.It was only in February, with the overwhelming negative public reaction to those disclosures, that Mr. Murdoch and his son with whom he runs the company, Lachlan Murdoch, began seriously considering settling. Yet they made no major attempt to do so until the eve of the trial in April, after still more damaging public disclosures.At the center of the action was Mr. Dinh and his overly rosy scenario.Mr. Dinh declined several requests for comment, and the company declined to respond to questions about his performance or his legal decisions. “Discussions of specific legal strategy are privileged and confidential,” a company representative said in a statement.Defenders of Mr. Dinh, a high-level Justice Department official under President George W. Bush, say his initial position was sound. Because of the strength of American free speech protections, Dominion needed to clear a high bar. And unfavorable rulings from the Delaware judge who oversaw the case hurt Fox’s chances, they argue.“I think Viet and Fox carried out just the right strategy by moving down two paths simultaneously — first, mounting a strong legal defense, one that I think would have eventually won at the appellate stage, and, second, continuously assessing settlement opportunities at every stage,” said William P. Barr, the former attorney general under Mr. Trump who worked with Mr. Dinh earlier in his career. Of course, the case would have been difficult for any lawyer. As the internal records showed, executives knew conspiracy theories about Dominion were false yet did not stop hosts and guests from airing them.That placed Fox in the ultimate danger zone, where First Amendment rights give way to the legal liability that comes from knowingly promoting false statements, referred to in legalese as “actual malice.”An Unanswered LetterMaria Bartiromo was the first Fox host to air the Dominion conspiracy theory.Roy Rochlin/Getty ImagesThe fall of 2020 brought Fox News to a crisis point. The Fox audience had come to expect favorable news about President Trump. But Fox could not provide that on election night, when its decision desk team was first to declare that Mr. Trump had lost the critical state of Arizona.In the days after, Mr. Trump’s fans switched off in droves. Ratings surged at the smaller right-wing rival Newsmax, which, unlike Fox, was refusing to recognize Joseph R. Biden’s victory.The Fox host who was the first to find a way to draw the audience back was Maria Bartiromo. Five days after the election, she invited a guest, the Trump-aligned lawyer Sidney Powell, to share details about the false accusations that Dominion, an elections technology company, had switched votes from Mr. Trump to Mr. Biden.Soon, wild claims about Dominion appeared elsewhere on Fox, including references to the election company’s supposed (but imagined) ties to the Smartmatic election software company; Hugo Chávez, the Venezuelan dictator who died in 2013; George Soros, the billionaire investor and Democratic donor; and China.On Nov. 12, a Dominion spokesman complained to the Fox News Media chief executive, Suzanne Scott, and the Fox News Media executive editor, Jay Wallace, begging them to make it stop. “We really weren’t thinking about building a litigation record as much as we were trying to stop the bleeding,” Thomas A. Clare, one of Dominion’s lawyers, said recently at a post-mortem discussion of the case held by a First Amendment advocacy group, the Foundation for Individual Rights and Expression.As Fox noted in its court papers, its hosts did begin including company denials. But as they continued to give oxygen to the false allegations, Dominion sent a letter to the Fox News general counsel, Lily Fu Claffee, demanding that Fox cease and correct the record. “Dominion is prepared to do what is necessary to protect its reputation and the safety of its employees,” the letter warned.It came amid more than 3,600 messages that Dominion sent debunking the conspiracy theories to network hosts, producers and executives in the weeks after the election.Such letters often set off internal reviews at news organizations. Fox’s lawyers did not conduct one. Had they done so, they may have learned of an email that Ms. Bartiromo received in November about one of Ms. Powell’s original sources on Dominion.The source intimated that her information had come from a combination of dreams and time travel. (“The wind tells me I’m a ghost but I don’t believe it,” she had written Ms. Powell.)Dan Novack, a First Amendment lawyer, said that if he ever stumbled upon such an email in a client’s files, he would “physically wrest my client’s checkbook from them and settle before the police arrive.”Fox, however, did not respond to the Dominion letter or comply with its requests — now a key issue in a shareholder suit filed in April, which maintains that doing so would have “materially mitigated” Fox’s legal exposure.The CaseDominion’s chief executive, John Poulos, at a news conference in April after the company settled its defamation suit against Fox.Pete Marovich for The New York TimesThree months after the election, another voting technology company tied to the Dominion conspiracy, Smartmatic, filed its own defamation suit against Fox, seeking $2.7 billion in damages. Dominion told reporters that it was preparing to file one, too.Mr. Dinh was publicly dismissive.“The newsworthy nature of the contested presidential election deserved full and fair coverage from all journalists, Fox News did its job, and this is what the First Amendment protects,” Mr. Dinh said at the time in a rare interview with the legal writer David Lat. “I’m not at all concerned about such lawsuits, real or imagined.”Mr. Dinh was saying as much inside Fox, too, according to several people familiar with his actions at the time. His words mattered.A refugee of Vietnam who fled the Communist regime and landed with his family in the United States virtually penniless, he graduated from Harvard and Harvard Law and was a clerk for Justice Sandra Day O’Connor. As an assistant attorney general for George W. Bush, he helped draft the Patriot Act expanding government surveillance powers. He and Lachlan Murdoch later became so close that Mr. Dinh, 55, is godfather to one of Mr. Murdoch’s sons.Mr. Dinh took a hands-on approach to the Dominion case, and eventually split with a key member of the outside team, Charles L. Babcock of Jackson Walker, according to several people with knowledge of the internal discussions.After disagreement over the best way to formulate Fox’s defense, Jackson Walker and Fox parted ways. George Freeman, executive director of the Media Law Resource Center and a former assistant general counsel for The Times, said Mr. Babcock’s exit had left Fox down a seasoned defamation defense lawyer. “He’s probably the best trial lawyer in the media bar,” Mr. Freeman said.By then, Mr. Dinh was fashioning the legal team more in his own image, having brought in a longtime colleague from the Bush administration, the former solicitor general Paul Clement.Mr. Clement’s presence on the Fox team was itself an indication of Mr. Dinh’s willingness to take the case all the way to the Supreme Court — few members of the conservative legal bar had more experience there.Mr. Dinh hired Dan Webb, a former U.S. attorney, for the role of lead litigator, succeeding Mr. Babcock. Mr. Webb was known for representing a beef manufacturer that sued ABC News over reports about a product sometimes referred to as “pink slime.” The case was settled in 2017 for more than $170 million.The Fox legal team based much of the defense on a doctrine known as the neutral reportage privilege. It holds that news organizations cannot be held financially liable for damages when reporting on false allegations made by major public figures as long as they don’t embrace or endorse them.“If the president of the United States is alleging that there was fraud in an election, that’s newsworthy, whether or not there’s fraud in the election,” Mr. Clement told Jim Geraghty, a writer for National Review and The Washington Post. “It’s the most newsworthy thing imaginable.”Fox remained so confident, the company said in reports to investors that it did not anticipate the suit would have “a material adverse effect.”But the neutral reportage privilege is not universally recognized. Longtime First Amendment lawyers who agree with the principle in theory had their doubts that it would work, given that judges have increasingly rejected it.“Most astute media defamation defense lawyers would not, and have not for a very long time, relied on neutral reportage — certainly as a primary line of defense, because the likelihood that a court would accept it as a matter of First Amendment law has continued to diminish over time,” said Lee Levine, a veteran media lawyer. An early warning came in late 2021. The judge in the case, Eric M. Davis, rejected Fox’s attempt to use the neutral reportage defense to get the suit thrown out altogether, determining that it was not recognized under New York law, which he was applying to the case. Even if it was recognized, Fox would have to show it reported on the allegations “accurately and dispassionately,” and Dominion had made a strong argument that Fox’s reporting was neither, the judge wrote in a ruling.That ruling meant that Dominion, in preparing its arguments, could have access to Fox’s internal communications in discovery.That was a natural time to settle. But Fox stuck with its defense and its plan, which always foresaw a potential loss at trial. “There was a strong belief that the appeal could very well be as important, or more important, than the trial itself,” Mr. Webb said at the post-mortem discussion of the case with Mr. Clare.Things Fall ApartText messages that came to light in the Dominion case included assertions by the Fox host Tucker Carlson that voter fraud could not have made a material difference in the election.Rebecca Noble for The New York TimesFox executives did not foresee how daunting the discovery process would become.At nearly every step, the court overruled Fox’s attempts to limit Dominion’s access to private communications exchanged among hosts, producers and executives. The biggest blow came last summer, after a ruling stating that Dominion could review messages from the personal phones of Fox employees, including both Murdochs.The result was a treasure trove of evidence for Dominion: text messages and emails that revealed the doubts that Rupert Murdoch had about the coverage airing on his network, and assertions by many inside Fox, including Mr. Carlson, that fraud could not have made a material difference in the election.The messages led to even more damaging revelations during depositions. After Dominion’s lawyers confronted Mr. Murdoch with his own messages showing he knew Mr. Trump’s stolen election claims were false, he admitted that some Fox hosts appeared to have endorsed stolen election claims.That appeared to have undermined Fox’s defense. But Mr. Dinh told Mr. Murdoch afterward that he thought the deposition had gone well, according to a person who witnessed the exchange. Mr. Murdoch then pointed a finger in the direction of the Dominion lawyer who had just finished questioning him and said, “I think he would strongly disagree with that.”During Mr. Carlson’s deposition last year, Dominion’s lawyers asked about his use of a crude word to describe women — including a ranking Fox executive. They also mentioned a text in which he discussed watching a group of men, who he said were Trump supporters, attack “an Antifa kid.” He lamented in the text, “It’s not how white men fight,” and shared a momentary wish that the group would kill the person. He then said he regretted that instinct.Mr. Carlson felt blindsided by the extent of the questions, according to associates and confirmed by a video leaked to the left-leaning group Media Matters: “Ten hours,” he exclaimed to people on the set of his show, referring to how long he was questioned. “It was so unhealthy, the hate I felt for that guy,” he said about the Dominion lawyer who had questioned him.There is no indication that Mr. Carlson’s texts tripped alarms at the top of Fox at that point.The alarms rang in February, when reams of other internal Fox communications became public. The public’s reaction was so negative that some people at the company believed that a jury in Delaware — which was likely to be left-leaning — could award Dominion over a billion dollars. Yet the company made no serious bid to settle.With prominent First Amendment lawyers declaring that Dominion had an exceptionally strong case, a siege mentality appeared to set in.In the interview with Mr. Geraghty, Mr. Clement said Fox was being singled out for its politics. Unlike mainstream media, which tend to report on major events the same way and have power in numbers, he said, “conservative media, or somebody like Fox, is in a much more vulnerable position.” He added, “If they report it, and the underlying allegations aren’t true, they’re much more out there on an island.”Reflecting the view of Mr. Dinh’s supporters even now, Mr. Barr, the former attorney general, said the “mainstream media stupidly cheered on Dominion’s case,” which he said they would come to regret because it would weaken their First Amendment protections. (He made a similar argument in March in The Wall Street Journal.)But Judge Davis had determined that Fox had set itself apart by failing to conduct “good-faith, disinterested reporting” in the segments at issue in the suit. That was in large part why, just ahead of opening statements, he ruled that Fox could not make neutral reportage claims that the conspiracy theory was newsworthy at the trial, knocking out a pillar of Fox’s strategy. (He also ruled that Fox had, indeed, defamed the company in airing the false statements.)Mr. Webb, who had already drafted much of his opening statement and tested it with a focus group, had to remove key parts of his remarks, he said in the post-trial discussion with Mr. Clare.The Directors Step InRupert and Lachlan Murdoch. Rupert Murdoch acknowledged in a deposition that several hosts for his networks promoted the false narrative that the 2020 election was stolen from President Donald J. Trump.Drew Angerer/Getty ImagesAll along, the Fox board had been taking a wait-and-see approach.But the judge’s pretrial decisions began to change the board’s thinking. Also, in those final days before the trial, Fox was hit with new lawsuits. One, from the former Fox producer Abby Grossberg, accused Mr. Carlson of promoting a hostile work environment. Another, filed by a shareholder, accused the Murdochs and several directors of failing to stop the practices that made Fox vulnerable to legal claims.The weekend before trial was to begin, with jury selection already underway, the board asked Fox to see the internal Fox communications that were not yet public but that could still come out in the courtroom.That Sunday, the board learned for the first time of the Carlson text that referred to “how white men fight.” Mr. Dinh did not know about the message until that weekend, according to two people familiar with the matter. Fox’s lawyers believed it would not come out at trial, because it was not relevant to the legal arguments at hand. The board, however, was concerned that Dominion was prepared to use the message to further undermine the company with the jury.In an emergency meeting that Sunday evening, the board — with an eye on future lawsuits, including those from Smartmatic and Ms. Grossberg — decided to hire the law firm Wachtell, Lipton Rosen & Katz to investigate whether any other problematic texts from Mr. Carlson or others existed.Over that same weekend, Lachlan Murdoch told his settlement negotiators to offer Dominion more than the $550 million for which he had already received board approval.In interviews, people with knowledge of the deliberations disagreed about how much Mr. Carlson’s text contributed to the final $787.5 million settlement price.By the time the board learned of the message, the Murdochs had already determined that a trial loss could be far more damaging than they were initially told to expect. A substantial jury award could weigh on the company’s stock for years as the appeals process played out.“The distraction to our company, the distraction to our growth plans — our management — would have been extraordinarily costly, which is why we decided to settle,” Lachlan Murdoch said at an investment conference this month.But there was broad agreement among people with knowledge of the discussions that the Carlson text, and the board’s initiation of an investigation, added to the pressure to avoid trial.The text also helped lead to the Murdochs’ decision a few days later to abruptly pull Mr. Carlson off the air. Their view had hardened that their top-rated star wasn’t worth all the downsides he brought with him.Fox’s trouble has not ended. In the weeks since the settlement and Mr. Carlson’s ouster, prime-time ratings have dropped (though Fox remains No. 1 in cable news), and new plaintiffs sued the network, most recently a former Homeland Security official, Nina Jankowicz.As one of Ms. Jankowicz’s lawyers said in an interview, the Dominion case “signals that there is a path.”Still pending is the Smartmatic suit. In late April, Fox agreed to hand over additional internal documents relating to several executives, including the Murdochs and Mr. Dinh. In a statement reminiscent of Mr. Dinh’s early view of the Dominion case, the network said that the $2.7 billion in damages sought by Smartmatic — operating in only one county in 2020 — were implausible and that Fox was protected by the First Amendment.“We will be ready to defend this case surrounding extremely newsworthy events when it goes to trial, likely in 2025,” the statement said. More

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      Did Fox News Just Pay for the Privilege of Continued Corruption?

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      In many legal settlements, both sides declare victory. The settlements themselves are often confidential, or are for amounts so far below the plaintiff’s original demand that a defendant can argue, with a straight face, that he settled essentially to make the case go away. Rather than deal with the risk of a rogue jury, defendants can settle for a reasonable sum and then often, in exchange for the cash, gain the silence of the plaintiff. The public, to the extent it cares, is left to argue over what “victory” truly meant.Not so with Dominion’s settlement against Fox. The moment the amount of the settlement emerged — $787,500,000 — I knew that Dominion had won and Fox had lost, and it wasn’t even close. The reason was clear to anyone who’d followed the case carefully: Damages, not guilt, were the weakest part of Dominion’s case. It had asked for $1.6 billion in damages, based in part on a theory outlined in the complaint that Fox’s “viral disinformation campaign” had “destroyed the enterprise value of a business that was worth potentially more than $1 billion.”To call that claim speculative is an understatement. According to a 2020 report in Forbes, Dominion had been paid $118.3 million for its election services between 2017 and 2019. I’ve litigated lost profit/lost enterprise value cases, and I know how difficult it is to prove estimated future financial fortunes.In other words, it was going to be straightforward to prove that Fox employees lied and deliberately platformed lies. It was going to be much harder to prove the kind of damages that Dominion claimed. Then, in the settlement, Fox paid Dominion a sum larger than Dominion could reasonably presume a jury would require. Why?This brings us to the difference between justice and accountability. The legal system can achieve justice when an aggrieved party is made whole. And make no mistake, Dominion received justice. It was more than made whole for Fox’s lies, and its quest for even more justice continues. Its lawsuits against OAN, Newsmax, Sidney Powell, Rudy Giuliani and Mike Lindell are still pending.But accountability is different. Accountability occurs when the people responsible for misconduct — and not merely their corporate bank accounts — experience proportionate consequences for their actions. One of the #MeToo movement’s greatest achievements was exposing to the world the degree to which corporations essentially paid for the privilege of continued corruption. They’d write checks to the survivors of abuse (granting them justice) without taking action against the abusers (enabling them to avoid accountability).This is not a critique of the plaintiffs at all. They need justice, and they don’t have the power to impose accountability. They can’t mandate that corporations apologize or terminate employees without the agreement of the corporation. The system itself can generally only give them money. Do we want to ask people who’ve been harmed by misconduct to delay or risk their own quest for justice for the sake of using the settlement process to mandate apologies or terminations that the courts don’t have the power to compel?The end result, however, is a system whereby wealthy institutions can essentially build in their corruption as a cost of doing business. In 2021, for example, my wife and I published a report detailing years of sexual abuse at one of the largest and most prominent Christian summer camps in America, Kanakuk Kamp. The pattern there was clear: pay survivors, get them to sign confidential settlements, and continue on with the same leaders who had abjectly failed to protect the kids in their care.The Fox settlement reeks of justice without accountability. Not only is Fox not publicly apologizing for its misconduct, it has released deceptive descriptions of the settlement and the court’s findings. Its initial statement said in part: “We acknowledge the court’s rulings finding certain claims about Dominion to be false. This settlement reflects Fox’s continued commitment to the highest journalistic standards.”That is not what the settlement reflects. The settlement reflects Fox’s abandonment of even the most minimal journalistic standards.Fox’s “news” story about the settlement was perhaps even worse. The headline stated that “Fox News Media, Dominion Voting Systems reach agreement over defamation lawsuit,” but it didn’t state the amount of the settlement and instead mainly focused on the judge’s compliments of Fox’s legal team. No, really:Delaware Superior Court Judge Eric Davis, who was overseeing the defamation lawsuit, praised both parties for their handling of the case.“I have been on the bench since 2010. … I think this is the best lawyering I’ve had, ever,” Davis said, adding, “I would be proud to be your judge in the future.”No mention, of course, that less than a week before, the same judge rebuked Fox’s lawyers, said he was concerned about “misrepresentations to the court” and lamented, “What do I do with attorneys that aren’t straightforward with me?” And then the Fox story ends with this howler of a paragraph:Then-President Donald Trump and his allies fiercely challenged Joe Biden’s victory in the weeks following the election. Some of them, including members of his legal team, made false and unsubstantiated claims against Dominion Voting Systems and are the subject of separate defamation lawsuits.Note the deflection of responsibility. It was Trump’s legal team that made “false and unsubstantiated claims.” That’s unquestionably true, but those same lawyers were enthusiastically put on the air by Fox for the purpose of spreading their “false and unsubstantiated claims.” And as the court’s summary judgment ruling made clear, Fox employees also made what they knew to be false and unsubstantiated claims.The end result is that Fox has paid an immense price for its lies, but it recognizes that its true vulnerability isn’t in its bank account but in its audience. It can absorb huge financial losses so long as those losses are fleeting. It cannot prosper if it loses its audience. Shielding its audience from the truth is easily worth almost $800 million to a company that made $1.2 billion in net income last year and is sitting on $4 billion in cash reserves.In the meantime, many of the viewers who keep the company so very profitable won’t know anything meaningful about the Dominion settlement or Fox’s lies — because Fox won’t tell them. I can think of any number of friends, relatives and neighbors who regularly consume conservative media and know nothing about the case. They know nothing about Fox’s falsehoods. Their ignorance is of incalculable worth to Fox.While this newsletter is admittedly rather bleak even in the face of Fox’s decisive court defeat, the story is far from over. Smartmatic’s $2.7 billion lawsuit against Fox is pending in New York State court in Manhattan, and the larger right-wing media world is facing a series of reckonings in cases across the country. My friends at Protect Democracy have filed cases against Project Veritas, Gateway Pundit, Rudy Giuliani, Dinesh D’Souza and several additional defendants related to some of the most grotesque lies in the entire Stop the Steal effort.There is a chance that great weight of legal judgments will lead to legal accountability. Justice can be so punishing that even the most amoral institutions have to respond as a matter of self-preservation. But true accountability remains elusive.Indeed, the Dominion lawsuit is perfectly representative of a vital lesson we’ve learned during the Trump era. The law can stave off disaster, but only moral norms truly preserve the republic. The law (and law enforcement) blocked Trump’s attempted coup. Legal processes are underway to hold Trump responsible for his alleged criminal misdeeds. Court cases are likely to compensate multiple victims of defamation for their profound losses. Yet still our public square is overrun with ignorance and outright lies. A Machiavellian spirit stalks the land.But the legal system does give our nation a chance to come to its senses. In the words of the old Fox show “The X-Files,” “The truth is out there.” Not only did Dominion receive justice, but its litigation gave the public the gift of truth. Now it’s incumbent on our nation to receive that truth and react accordingly. Fox News has tried to purchase the privilege of continued corruption, but even its vast bank account can’t protect it from the public — but only if that public possesses a trace of curiosity and preserves a moral core. More

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      Fox Settles Dominion Suit, but Smartmatic Case and Others Loom

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      Another election technology company, Smartmatic, is suing news outlets, including Fox, over false claims of election fraud, and Dominion has other cases pending.On Tuesday, Fox News hastily agreed to pay $787.5 million to resolve a defamation suit filed by Dominion Voting Systems — among the largest settlements ever in a defamation case — just hours after the jury for the trial was selected. In addition to the whopping financial settlement, Fox conceded that “certain claims” it had made about Dominion were false.In settling with Dominion, the network avoided the possible embarrassment of a trial that could have exposed its inner workings. Rupert Murdoch, the 92-year-old Fox News founder, and the Fox host Tucker Carlson were potential witnesses.Dominion sued the cable news network two years ago, after it aired stories falsely claiming that Dominion’s voting machines were susceptible to hacking and had flipped votes to Joseph R. Biden Jr. that had been cast for Donald J. Trump, who was president.But the settlement with Dominion is not the only legal action that some news outlets are facing after making bogus claims about the 2020 elections.Dominion v. NewsmaxNewsmax apologized in 2021 for spreading false claims that a Dominion employee rigged voting machines.Callaghan O’Hare/ReutersIn 2021, the right-wing news outlet Newsmax formally apologized for spreading false allegations that an employee of Dominion had rigged voting machines. In a statement on its website, Newsmax said it had found “no evidence” that the Dominion employee, Eric Coomer, had manipulated voting machines in an effort to sabotage Mr. Trump’s re-election bid.“On behalf of Newsmax, we would like to apologize for any harm that our reporting of the allegations against Dr. Coomer may have caused to Dr. Coomer and his family,” the statement said.Dominion also sued Mike Lindell, the chief executive of MyPillow and an outspoken supporter of the former president, and two of Mr. Trump’s lawyers, Sidney Powell and Rudy W. Giuliani, for their baseless claims about election fraud. In 2021, a federal judge refused to throw out the suits against them. And in October, the Supreme Court declined to consider Mr. Lindell’s bid to fend off his suit. This month, he told The New York Times, “I will never back down, ever, ever, ever.” The lawsuits are ongoing.Smartmatic v. Fox NewsIn 2021, Fox News was also sued by Smartmatic, which provided voting technology in Los Angeles County for the 2020 election. In its complaint, Smartmatic wrote, “Fox joined the conspiracy to defame and disparage Smartmatic and its election technology and software,” adding, “The story led a mob to attack the U.S. Capitol.” The suit, filed in New York State Supreme Court, seeks at least $2.7 billion in damages.In February, a New York appeals court denied Fox’s request to dismiss the case, and a New York judge said last month that the case could proceed. A trial date has not been set.“We will be ready to defend this case surrounding extremely newsworthy events when it goes to trial, likely in 2025,” Fox News said in a statement on Wednesday.Smartmatic v. NewsmaxSmartmatic also brought defamation litigation against Newsmax, accusing it of spreading falsehoods about the company. Judge Eric M. Davis, who was also assigned to the Fox-Dominion trial, will preside. In February, Newsmax lost its bid to end the litigation, and Judge Davis let the case move forward.Smartmatic v. One America NewsThe headquarters of One America News in San Diego.The New York TimesIn 2021, Smartmatic also sued One America News Network, accusing the news organization of airing disinformation about the 2020 election even after the company warned it to stop. In June, a judge denied a request to dismiss the lawsuit.Lou DobbsThis month — days before jury selection began for the Dominion case — Fox News and Lou Dobbs, a former longtime Fox Business host and loyal Trump supporter, settled a defamation case with Majed Khalil, a Venezuelan businessman. Mr. Dobbs and Ms. Powell, a regular guest on Fox News, falsely claimed on the air and in related Twitter posts that Mr. Khalil had been part of a conspiracy to flip votes. One of the tweets said he was “the effective ‘COO’ of the election project.” Fox canceled Mr. Dobbs’s show in February 2021. More

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      What Next for Dominion After Its $787.5 Million Fox Settlement

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      The election technology company has several more defamation lawsuits pending against public figures and news outlets.Dominion Voting Systems did more on Tuesday than settle its lawsuit against Fox News for $787.5 million: It also set the tone for the many related defamation cases it has filed. Legal experts say the settlement with Fox News, one of the largest defamation payouts in American history, could embolden Dominion as it continues to defend its reputation, which it says was savaged by conspiracy theories about vote fraud during the 2020 election. The company has several cases pending against public figures including Mike Lindell, the MyPillow executive, and news outlets such as Newsmax.The targets of Dominion’s remaining lawsuits, few of which have deep pockets and legal firepower at Fox’s level, will likely take a cue from Dominion and Fox’s face-off, legal experts said.“Even though it was a settlement, it certainly was a victory for Dominion,” said Margaret M. Russell, a law professor at Santa Clara University. “For other possible defendants, I don’t think this will make them double down; it will make them fearful.”Dominion is the second-largest election technology company operating in the United States, where there are few other major players. The company, whose majority owner is the private equity firm Staple Street Capital, was made “toxic” by the false fraud narratives in 2020, one of Staple Street’s founders said in court documents. At one point, Dominion estimated that misinformation cost it $600 million in profits.Fox said in its court filings that Dominion did not have to lay off employees, close offices or default on any debts, nor did it suffer any canceled business contracts as a result of the news network’s coverage. Fox said in one filing that Dominion had projected $98 million in revenue for 2022, which would make Tuesday’s settlement the equivalent of eight years of sales.Dominion’s customers are largely officials who oversee voting in states and counties around the country; the company served 28 states, as well as Puerto Rico, in the 2020 election. The false stories about fraud that were directed at the company were embraced by some local election officials.In court documents, an expert enlisted by Dominion said that the company had very low early contract termination rates and very high contract renewal rates before the 2020 election, but blamed the preoccupation with the false fraud claims for prompting some clients to exit deals after the vote.Now, Dominion has emerged from its tussle with Fox in a stronger position to win back any skittish clients or score new business, legal experts said.Last month, the judge in Dominion’s case against Fox reviewed evidence of the false claims and wrote that it “is CRYSTAL clear that none of the statements relating to Dominion about the 2020 election are true,” effectively confirming that the company was aboveboard.The secretary of state of New Mexico, Maggie Toulouse Oliver, applauded Tuesday’s settlement.“The harm done by election lies/denialism since 2020 is immeasurable, but this settlement against Fox News provides accountability & sends a strong message we’re happy to see,” Ms. Toulouse Oliver wrote on Twitter. During the midterm primaries last year, she blamed “unfounded conspiracy theories” when she sued officials in Otero county who had cited concerns about Dominion machines in their refusal to certify election results.Fox acknowledged in a statement on Tuesday that some of the claims it had made about Dominion were false, saying that the admission “reflects Fox’s continued commitment to the highest journalistic standards.”John Poulos, Dominion’s founder and chief executive, said in a statement on Tuesday that Fox caused “enormous damage” to his company and “nothing can ever make up for that.” He also thanked the election officials who make up Dominion’s clientele, and nodded to Staple Street’s support. “Lies have consequences,” a lawyer for Dominion Voting Systems said during a news conference.Pete Marovich for The New York TimesDominion drew some complaints that by settling, it had given up the opportunity to extract an apology from Fox or force it through a potentially embarrassing trial. An opinion article in the Daily Beast bemoaned that the voting technology company had “decided to step out of the ring with a bag of money instead of vanquishing one of the country’s most destructive and influential peddlers of hate and disinformation.”Mr. Poulos called the settlement “a big step forward for democracy” in an interview with ABC News broadcast on Wednesday.Legal experts noted that even if Dominion had prevailed in a jury verdict, it would have risked years of expensive battles over appeals from Fox.“The tort of defamation is not about saving democracy from liars,” said Enrique Armijo, a professor and First Amendment expert at Elon University School of Law. “It’s about saving the reputation of the people who have been lied about and making those liars compensate them for the harms to their reputations.”Fox still faces other legal challenges, including a $2.7 billion defamation lawsuit from another election technology company, Smartmatic. Fox said it planned to defend freedom of the press in the case and called Smartmatic’s damages claims “outrageous, unsupported and not rooted in sound financial analysis.” Smartmatic said in a statement that, after the Dominion settlement, it “will expose the rest” of the “misconduct and damage caused by Fox’s disinformation campaign.”Dominion, too, has more cases pending, including against the pro-Trump lawyer Rudolph W. Giuliani and One America News Network. Although the lawsuits involve similar false claims of election fraud, the facts of each case vary, experts said.Attorneys for Mr. Lindell and Mr. Giuliani did not immediately respond to requests for comment, nor did Newsmax or OAN.For the individuals and smaller companies facing legal claims, for whom a substantial jury judgment could be an “existential” threat, settlement may seem more attractive after Tuesday, Mr. Armijo said.“They’re not going to be able to put up the same level of defense that Fox did; they just don’t have the resources to do it,” he said. “It’s hard to see the other defamation defendants in the remaining cases getting any further than Fox did, which, as we saw, is not very far.” More

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      Analysis: Fox News’s $787.5 Million Settlement Is the Cost of Airing a Lie

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      Fox News’s late-stage agreement with Dominion Voting Systems came with a rare acknowledgment of broadcasting false claims by the conservative media powerhouse.In settling with Dominion Voting Systems, Fox News has avoided an excruciating, drawn-out trial in which its founding chief, Rupert Murdoch, its top managers and its biggest stars would have had to face hostile grilling on an embarrassing question: Why did they allow a virulent and defamatory conspiracy theory about the 2020 election to spread across the network when so many of them knew it to be false?But the $787.5 million settlement agreement — among the largest defamation settlements in history — and Fox’s courthouse statement recognizing that the court had found “certain claims about Dominion” aired on its programming “to be false” — at the very least amount to a rare, high-profile acknowledgment of informational wrongdoing by a powerhouse in conservative media and America’s most popular cable network.“Money is accountability,” Stephen Shackelford, a Dominion lawyer, said outside the courthouse, “and we got that today from Fox.”During a news conference, a lawyer for Dominion Voting Systems said, “lies have consequences.”Pete Marovich for The New York TimesThe terms of the agreement, which was abruptly announced just before lawyers were expected to make opening statements, did not require Fox to apologize for any wrongdoing in its own programming — a point that Dominion was said to have been pressing for.Shortly after the agreement was reached, Fox said it was “hopeful that our decision to resolve this dispute with Dominion amicably, instead of the acrimony of a divisive trial, allows the country to move forward from these issues.”The settlement carries an implicit plea of “no contest” to several pretrial findings from the presiding judge in the case, Eric M. Davis, that cast Fox’s programming in exceptionally harsh light. In one of those findings, the judge sided with Dominion in its assertion that Fox could not claim that its airing of the conspiracy theory — generally relating to the false claim that its machines “switched” Trump votes into Biden votes — fell under a legally protected status of “news gathering” that can shield news organizations when facts are disputed. The judge wrote, “the evidence does not support that FNN conducted good-faith, disinterested reporting.”In another finding, the judge wrote that the “evidence developed in this civil proceeding demonstrates that is CRYSTAL clear that none of the statements relating to Dominion about the 2020 election are true.”Through those findings, the judge seriously limited Fox’s ability to argue that it was acting as a news network pursuing the claims of a newsmaker, in this case, the president of the United States, who was the lead clarion for the false Dominion narrative.In those heady days before the first day of trial, Fox had been indicating that if it were to lose at trial, it would work up an appeal that would, at least partly, argue with those judicial rulings. Now they stand undisputed. By the end of the day on Tuesday, it was clear that Fox’s lawyers were engaged in an urgent calculus to take the financial hit rather than risk losing at trial. As so many legal experts before the trial had argued, Dominion had managed to collect an unusual amount of internal documentation from Fox showing that many inside the company knew the Dominion election conspiracy theory was pure fantasy. That extended to the network’s highest ranks — right up to Mr. Murdoch himself.Rupert Murdoch and his lieutenants could have faced a drawn-out trial that would have forced them to acknowledge why they broadcast conspiratorial claims that knew to be false.Mary Altaffer/Associated PressThat evidence appeared to bring Dominion close to the legal threshold in defamation cases known as “actual malice” — established when defamatory statements are “made with knowledge of its falsity or with reckless disregard of whether it was true or not.” (That bar, however, is not always easy to meet, and there are no guarantees in front of a jury.)“Dominion Voting had elicited much critical evidence that Fox had acted with actual malice or reckless disregard for the truth, which it could have proved to a jury, so the only question remaining would have been damages,” said Carl Tobias, a law professor at the University of Richmond. “Trial of the case also might have undermined the reputation of Fox when the evidence was presented in open court.”It was less surprising that Fox settled than that it did so at such a late stage on Tuesday. A trial would have seen Fox News personnel and Mr. Murdoch parrying with lawyers over the knowledge of falsity they held and why they did not take any action to stop it. The answers would have further unmasked the internal modus operandi of an organization that has long guarded its internal operations.The one question that only time will answer is whether the settlement was enough to cause Fox News to change the way it handles such incendiary and defamatory conspiracy content. The amount is huge — $787.5 million. Fox News certainly doesn’t want to see a similar settlement anytime soon as other legal cases loom, notably a $2.7 billion suit from another election technology company, Smartmatic.But Fox did manage to escape Dominion’s goal of an on-air admission or apology, meaning it did not have to force either on its audience, which did not hear much about the case on Fox’s shows to begin with.“It’s hard to say how damaging a decision against Fox would have been for the company beyond the financial cost of the verdict because their audience is very loyal and bought into the polarized perspective their opinion hosts present,” Michelle Simpson Tuegel, a trial lawyer, said in a statement. “But the reputational harm of having executives, including Chairman Rupert Murdoch, and hosts take the stand seems to have moved the parties towards a resolution.” More

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      Fox Will Pay $787.5 Million to Settle Dominion Defamation Suit

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      The settlement with Dominion Voting Systems was the latest extraordinary twist in a case that exposed the inner workings of the most powerful voice in conservative news.Fox News abruptly agreed on Tuesday to pay $787.5 million to resolve a defamation suit filed by Dominion Voting Systems over the network’s promotion of misinformation about the 2020 election, averting a lengthy and embarrassing trial just as a packed courtroom was seated in anticipation of hearing opening statements.The settlement, one of the largest ever in a defamation case, was the latest extraordinary twist in a case that has been full of remarkable disclosures that exposed the inner workings of the most powerful voice in conservative news.In addition to the huge financial price, Dominion exacted a difficult admission from Fox News, which acknowledged in a statement that “certain claims” it made about Dominion were false.“The truth matters. Lies have consequences,” Justin Nelson, a lawyer for Dominion, said outside Delaware Superior Court on Tuesday.“Lies have consequences,” a lawyer for Dominion Voting Systems said during a news conference.Pete Marovich for The New York TimesNews of the 11th-hour agreement stunned the full courtroom in Wilmington, where the case was being heard. Gasps filled the air when Judge Eric M. Davis told the jury shortly before 4 p.m. that the two parties had resolved the matter. Lawyers for both sides had been preparing to speak to the jury for the first time, microphones clipped to their jacket lapels.The settlement spares Fox a trial that would have gone on for weeks and put many of the company’s most prominent figures — from the media mogul Rupert Murdoch to hosts like Tucker Carlson and Maria Bartiromo — on the stand.The case held the potential to make public a stream of damaging information about how the network told its audience a story of fraud and interference in the 2020 presidential election that many of its own executives and on-screen personalities did not believe. And the network was not forced to apologize — a concession that Dominion lawyers had sought, lawyers involved in the case said.Dominion sued two years ago, after Fox aired false stories claiming that Dominion’s voting machines were susceptible to hacking and had flipped votes from President Donald J. Trump to Joseph R. Biden Jr. On Tuesday, the company expressed a sense of exoneration about the large financial cost that Fox will have to pay. While Dominion’s suit asked for damages of $1.6 billion, almost double the settlement figure, the company will avoid many years of appeals that could have trimmed or eliminated any payout from a trial.“Over two years ago, a torrent of lies swept Dominion and election officials across America into an alternative universe of conspiracy theories causing grievous harm to Dominion and the country,” Mr. Nelson said. “Today’s settlement of $787.5 million represents vindication and accountability.”The case and the expected trial were significant because they raised the prospect for an elusive judgment in the post-Trump era: Very few allies of the former president’s have been held legally accountable for their roles in spreading the falsehoods that undermined confidence in the country’s democratic process and cast Mr. Biden’s victory as illegitimate. Polls show that large numbers of Republicans still believe the 2020 election was tainted.The size of the settlement, experts said, seems to have little precedent. RonNell Andersen Jones, a professor of law at the S.J. Quinney College of Law at the University of Utah, said she believed it was one of the largest settlements in a defamation case ever.“This was unquestionably the strongest defamation case we’ve ever seen against a major media company,” Ms. Andersen Jones said. The case was even more unusual, she added, because media companies typically seek to settle well before so much damaging information about their internal workings is released.A deal came together at the last possible minute, after months of almost no serious discussion between the two sides. As the case proceeded, Dominion divulged extraordinary details about the doubts that Fox employees expressed privately about voter fraud claims, even as they struck a different tone on the air.“Settlement before this trove of evidence became public would of course have been in Fox’s best interest,” Ms. Andersen Jones said. “Waiting until the eve of trial, when the whole nation had a chance to focus on what Fox said internally about Trump, its sources and its own viewers, gave Dominion the extra layer of accountability it was seeking.”It is uncommon for defamation suits to get to trial, in part because the bar for proving “actual malice” — the legal standard that requires plaintiffs to show that defendants knew what they were saying was a lie, or had a reckless disregard for the truth — is so high. It is rarer yet for one to feature the volume of evidence that Dominion had amassed against Fox.In the run-up to trial, Dominion publicly released reams of internal communications among Fox executives, hosts and producers that revealed how the country’s most-watched cable news network set in motion a strategy to win back viewers who had tuned out after Mr. Trump’s loss. The messages tell the story of a frantic scramble inside Fox as it started losing audience share to competitors, like Newsmax, that were more willing to report on and endorse false claims about a plot involving Dominion machines to steal the election from Mr. Trump.Producers referred to pro-Trump guests like Sidney Powell and Rudolph W. Giuliani as “gold” for ratings and acknowledged that the audience didn’t want to hear about subjects like the possibility of a peaceful transition from a Trump administration to a Biden administration.Those communications have shown how employees at Fox expressed serious doubts about and, at times, were scornful of Mr. Trump and his allies as they spread lies about voter fraud, questioning the legitimacy of Mr. Biden’s election. Some at Fox mocked Mr. Trump and his lawyers as “crazy” and under the influence of drugs like L.S.D. and magic mushrooms.Some Fox hosts privately described their colleagues as “reckless” for endorsing Mr. Trump’s false claims, acknowledging that there was “no evidence” to back them up. Yet for weeks, Fox continued to give a platform to election deniers, despite doubts about their credibility. Dominion challenged statements made on multiple programs on multiple nights. Typically, defamation cases involve only a single disputed statement.The trial would have been a spectacle. Mr. Murdoch, whose family controls the Fox media empire, was slated to be one of Dominion’s first witnesses this week. Star anchors including Sean Hannity, Mr. Carlson and Ms. Bartiromo were likely to be called at other points.Even the most blockbuster media trials of the last generation — Ariel Sharon’s suit against Time and Gen. William C. Westmoreland’s against CBS, both in the 1980s — lacked the most explosive elements of this case, which raised weighty questions about the protections the First Amendment affords the media and whether one of the most influential forces in conservative politics would have to pay a price for amplifying misinformation.Both of those cases were settled out of court, too.In recent days, Fox raised questions about Dominion’s claims of damages. On Monday, it disputed Dominion’s worth, pointing to a recent legal filing in which the company lowered part of its request for compensation. Fox lawyers also raised doubts about the harm that Dominion had suffered, saying the company acknowledged that it had turned a profit in recent years.But the potential pitfalls for proceeding with a trial were real for Fox. Some of the revelations from the depositions that Dominion had conducted offered a preview of how damaging a trial could be. Mr. Murdoch acknowledged during his deposition that some Fox hosts had “endorsed” Mr. Trump’s lies, an admission that undercut Fox’s defense that it was merely reporting on — not amplifying — the former president’s claims.After the deposition concluded, the general counsel of Fox Corporation, Viet Dinh, tried to reassure Mr. Murdoch that he had done well.“I’m just going to say it. They didn’t lay a finger on you,” Mr. Dinh said.Mr. Murdoch disagreed, according to a person who witnessed the exchange. He pointed a finger at the lawyer who had questioned him for Dominion, Mr. Nelson, and said, “I think he would strongly disagree with that.”To which Mr. Nelson replied, “Indeed, I do.” More

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      2016 Trump Campaign to Pay $450,000 to Settle Nondisclosure Agreements Suit

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      The settlement with a former campaign aide who says she was the target of sexual harassment effectively invalidates agreements hundreds of 2016 Trump campaign officials signed.Former President Donald J. Trump’s 2016 campaign will pay $450,000 as part of a settlement of a long court fight over its use of nondisclosure agreements, according to documents filed on Friday in a New York federal court.The proposed settlement with Jessica Denson, a former campaign aide whom the campaign tried to silence as she claimed she was the target of abusive treatment and sexual harassment by another campaign member, effectively invalidates the nondisclosure agreements that hundreds of officials from Mr. Trump’s first presidential run signed.Ms. Denson is set to receive $25,000, the filings show, and the rest will cover legal fees and other costs. The judge in the case, who has not yet approved the settlement, pushed back on efforts by the campaign to keep the paperwork sealed. The details were reported earlier by Bloomberg News.“We think that this N.D.A. was entirely unreasonable from the beginning,” said David K. Bowles, one of the lawyers for Ms. Denson, who initially represented herself in the case. “No attorney should have ever drafted it, and no campaign worker should have ever been compelled to sign it. We think the unwinding of the N.D.A. is a triumph for free speech, for democracy and for Jessica Denson, in particular, and we are very proud of our accomplishment tonight.”A representative for Mr. Trump’s 2016 campaign did not respond to emails seeking comment.Mr. Trump has made broad use of nondisclosure agreements throughout his business career and, later, his political career. The agreements have generally sought to keep people from disclosing information about Mr. Trump, but he has also used them as a cudgel against a wide variety of aides. In Ms. Denson’s case, her lawyers argued the agreement was overly broad, among other flaws.Ms. Denson had been trying to make the suit a certified class action shortly before the matter was settled. She has a separate case pending related to her claim that she was harassed by a superior on the campaign. More

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      Sean Hannity and Other Fox Stars Face Depositions in Defamation Suit

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      The depositions are one of the clearest indications yet of how aggressively Dominion Voting Systems is moving forward with its suit against the media company.Some of the biggest names at Fox News have been questioned, or are scheduled to be questioned in the coming days, by lawyers representing Dominion Voting Systems in its $1.6 billion defamation suit against the network, as the election technology company presses ahead with a case that First Amendment scholars say is extraordinary in its scope and significance.Sean Hannity became the latest Fox star to be called for a deposition by Dominion’s legal team, according to a new filing in Delaware Superior Court. He is scheduled to appear on Wednesday.Tucker Carlson is set to face questioning on Friday. Lou Dobbs, whose Fox Business show was canceled last year, is scheduled to appear on Tuesday. Others who have been deposed recently include Jeanine Pirro, Steve Doocy and a number of high-level Fox producers, court records show.People with knowledge of the case, who would speak only anonymously, said they expected that the chief executive of Fox News Media, Suzanne Scott, could be one of the next to be deposed, along with the president of Fox News, Jay Wallace. Rupert and Lachlan Murdoch, whose family owns Fox, could follow in the coming weeks.The depositions are among the clearest indications yet of how aggressively Dominion is moving forward with its suit, which is set to go to trial early next year, and of the legal pressure building on the nation’s most powerful conservative media company. There have been no moves from either side to discuss a possible settlement, people with knowledge of the case have said.More Coverage of Fox News‘American Nationalist’: Tucker Carlson stoked white fear to conquer cable news. In the process, the TV host transformed Fox News and became former President Donald J. Trump’s heir.Empire of Influence: ​​A Times investigation looked at how the Murdochs, the family behind a global media empire that includes Fox News, have destabilized democracy on three continents.Defamation Case: ​​Legal scholars say that the $1.6 billion lawsuit filed by Dominion Voting Systems against the network could be one of the most consequential First Amendment cases in a generation.How Russia Uses Fox News: The network has appeared in Russian media as a way to bolster the Kremlin’s narrative about the Ukraine war.It is common for large media companies like Fox to settle such cases well before they reach the point where journalists or senior executives are forced to sit for questioning by lawyers from the opposing side. But both Dominion and Fox appear to be preparing for the likelihood that the case will end up in front of a jury.The suit accuses Fox of pushing false and far-fetched claims of voter fraud to lure back viewers who had defected to other right-wing news sources. In its initial complaint, Dominion’s lawyers framed their lawsuit as a matter of profound civic importance. “The truth matters,” they said, adding, “Lies have consequences.”The judge overseeing the case allowed Dominion in late June to expand the suit to include the cable news network’s parent company, Fox Corporation, potentially broadening the legal exposure of both Murdochs. Shortly after, Fox replaced its outside counsel on the case and hired one of the nation’s most prominent trial lawyers, Dan Webb.A spokesman for Fox Corporation has said that the First Amendment protected the company from the suit, and that any attempt by Dominion lawyers to put the Murdochs at the center of their case would be a “fruitless fishing expedition.”Both Dominion and Fox appear to be preparing for the case to go before a jury.Michael M. Santiago/Getty ImagesThe network is “confident we will prevail as freedom of the press is foundational to our democracy and must be protected,” a Fox News spokeswoman said in a statement. She added that the $1.6 billion in damages that Dominion is seeking are “outrageous, unsupported and not rooted in sound financial analysis.” According to court filings, Dominion estimates business losses at hundreds of millions of dollars and values the company at around $1 billion.Dominion’s legal complaint lays out how Fox repeatedly aired conspiracy theories about the company’s purported role in a plot to steal votes from former President Donald J. Trump, and argues that its business has suffered considerably as a result. Those falsehoods — including that Dominion was a pawn of the Venezuelan strongman Hugo Chavez and that its machines were designed with a feature that allowed votes to be flipped from one candidate to another — aired night after night as Fox hosts like Mr. Hannity and Mr. Dobbs allowed guests to make them on their shows, and in some cases vouched for them.Legal experts say the case is one of the most potentially consequential libel suits brought against an American media company in more than a generation, with the potential to deliver a judgment on a falsehood that has damaged the integrity of the country’s democratic system and remains an article of faith among many Trump supporters.Defamation is extremely difficult to prove in a case like this because of the broad constitutional protections that cover the news media. A company like Dominion has to prove either that a media outlet knew what it was publishing or broadcasting was false, or that it acted so hastily it overlooked facts proving that falsity, a legal standard known as demonstrating a “reckless disregard for the truth.”Dominion’s legal strategy, which it has detailed in court filings, hinges on getting testimony and unearthing private communications between Fox employees that prove either such recklessness or knowledge that the statements were false.The case has stirred considerable unease inside Fox all summer, as employees have had to turn over months of emails and text messages to Dominion lawyers and prepare for depositions. Other current and former Fox personalities who have been deposed include Dana Perino, Shepard Smith and Chris Stirewalt, who was part of the team that made the election night projection that Mr. Trump would lose Arizona, and the presidency as a result.This is not the first time that Mr. Hannity has been in the middle of a high-profile defamation suit. In 2018, Fox was sued by the parents of Seth Rich, a former Democratic National Committee staff member whom Mr. Hannity and others at Fox falsely linked to a hacking that resulted in committee emails being published by WikiLeaks. Mr. Rich was murdered in an apparent botched robbery in 2017, though conspiracy theorists tried to blame his death on Democratic operatives. Fox News later retracted some of its reporting on the story, saying it did not meet the network’s editorial standards.Fox settled the Rich case in the fall of 2020, before Mr. Hannity could be deposed. More